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OECD Says Canada's Sound Policies
Will Lead GDP to Slow, Not Crash

Dow Jones Newswires

Updated Sept. 6, 2000 12:01 a.m. ET

TORONTO -- Good macroeconomic and fiscal policies combined with the stimulative effects of strong U.S. demand for Canadian output have combined to create an environment in which the Canadian economy may be operating above estimates of noninflationary capacity, the Organization for Economic Cooperation and Development said in its latest survey of Canada.

The OECD predicted that even with an expected ebb in U.S. demand and the effects of recent interest-rate increases, Canada's gross domestic product growth rate will...